Correlation Between SEALSQ Corp and Nano Labs

Can any of the company-specific risk be diversified away by investing in both SEALSQ Corp and Nano Labs at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SEALSQ Corp and Nano Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SEALSQ Corp Ordinary and Nano Labs, you can compare the effects of market volatilities on SEALSQ Corp and Nano Labs and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SEALSQ Corp with a short position of Nano Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALSQ Corp and Nano Labs.

Diversification Opportunities for SEALSQ Corp and Nano Labs

0.0

Correlation Coefficient

SEALSQ Corp  Nano Labs

Pay attention - limited upside

The 3 months correlation between SEALSQ and Nano is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEALSQ Corp Ordinary and Nano Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Labs and SEALSQ Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SEALSQ Corp Ordinary are associated (or correlated) with Nano Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Labs has no effect on the direction of SEALSQ Corp i.e., SEALSQ Corp and Nano Labs go up and down completely randomly.

Pair Corralation between SEALSQ Corp and Nano Labs

If you would invest  300.00  in Nano Labs on September 4, 2024 and sell it today you would earn a total of  810.00  from holding Nano Labs or generate 270.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

SEALSQ Corp Ordinary  vs.  Nano Labs

SEALSQ Corp Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SEALSQ Corp Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SEALSQ Corp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Nano Labs

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nano Labs are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Nano Labs sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEALSQ Corp and Nano Labs

The main advantage of trading using opposite SEALSQ Corp and Nano Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALSQ Corp position performs unexpectedly, Nano Labs can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nano Labs will offset losses from the drop in Nano Labs' long position.

The idea behind SEALSQ Corp Ordinary and Nano Labs pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.